From the News and Tribune:
"Indiana’s Department of Local Government Finance returned Clark County’s certified budget order recently, matching the $14.5 million figure submitted by the Clark County Council.
There were a few minor changes, which included an alteration in the bond debt rate, made to the preliminary budget — called a 1782 notice — sent to the county earlier in the month.
Despite the county receiving the full amount it approved in October — down from the $20.7 million requested from various department heads — the expectation is that its spending will be at a minimum.
Outstanding expenses
In 2011, the DLGF returned a certified budget amount of $11.8 million to the county. Unable to cover expenses on the amount returned, the county was mandated to pay for court and the sheriff’s department operations, which added $3.2 million to the operational funds. Between the certified budget order and the mandates, the county operated off of $15 million in 2011, $500,000 more than what was approved this year.
Clark County Councilman Chuck Moore said he would not be surprised if the county had to issue another mandate this year to cover expenses.
“I doubt that it’s possible to operate off that $14.5 million,” he said. “I don’t feel bad about doing a mandate.”
Clark County Councilman Brian Lenfert said expenses that don’t fit within the $14.5 million budget include costs for county employee health insurance, jail operations, the Clark County prosecutor’s office, juvenile detention and the county’s building authority.
“There’s about $3 million additional expenses the county needs to fund,” he said.
Portions of the jail operating costs are likely to be covered by Local Option Income Tax funds and Department of Corrections funds, but will still leave about a $600,000 shortfall, Lenfert said. In addition, the county’s Economic Development Income Tax may be used to cover a portion of the Building Authority’s anticipated $860,000 in expenses, as well as other county expenses.
If there is a shortfall, Moore said he doesn’t think the county will have to mandate for the same amount it did last year.
“I think we can get by with one or the other,” he said.
Mandates again?
According to the certified budget order, the county was able to tax for $3.2 million associated with the two mandates issued by the county council to cover expenses for the Clark County Courts and Clark County Sheriff’s Department.
The bond debt rate related to the mandates was incorrect on the 1782 report. The amount included in the notice totaled only $1.18 million at a certified rate of 3 cents per $100 of assessed value. The amount approved on the certified budget allowed the county to levy for $3.2 million at a rate of 8 cents per $100 of assessed value.
The impact to a homeowner was an increase on their total county taxes — based on a home valued at $100,000 — of about $82. The total county tax rate for a resident is more than 35 cents per $100 of assessed value. For a $100,000 home, the county tax alone totals about $357. Without the mandate, it would total about $275.
Moore gave an estimate — if the mandate were needed — that it would be closer to $1.6 million.
Lenfert said the county needs about $18 million to cover all the county’s expenses. By adding together EDIT, LOIT, Riverboat funds and the county’s general fund, he said the county expects to receive about $17.6 million.
He added the $1.7 million surplus at the end of 2011 will do little to help cover expenses. In addition to going toward the aforementioned outstanding expenses, more than $200,000 has already been spent in encumbrances from 2011, $80,000 has gone to the prosecutor’s office and more than $300,000 is being reserved to pay back those who hit the property tax caps.
Who is hitting the caps
According to Micah Vincent, general counsel for the Department of Local Government Finance, last year about 27 percent of the parcels in the county hit the circuit breaker tax cap.
“I’m sure there’ll be more people that hit the cap [this year],” Lenfert said.
Of the surplus funding, he said the council is estimating a return $350,000 in tax caps.
“We’ve got to see what the circuit breakers are going to do to us,” Moore said.
But he added the DLGF has given the council conflicting reports in the past on how many residents are reaching the 1 percent tax cap.
According to the information provided by Vincent, in 2010, 1,465 residential parcels and 11,252 total parcels, or 19.6 percent, received a credit. Last year the number rose to 3,905 residential parcels and 15,583 total parcels, or 27.1 percent, that hit the tax credit."
http://newsandtribune.com/business/x1450996796/Clark-County-gets-14-5M
